RVNL Shares Plunge 44% from Record High: Time to Buy or Brace for Further Decline?
13th Jan 2025
RVNL Share Price Performance and Outlook
After climbing to a record high of ₹647 apiece on the NSE in July 2024, Rail Vikas Nigam Limited's (RVNL) share price has remained in the base building mode. The railway PSU stock has lost around 44% from the lifetime high, leading to questions about whether it's an opportune time to buy or if more pain lies ahead.
Fundamental Analysis and Expert Recommendations
According to Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities, "RVNL shares are under pressure, but nothing is wrong with the company's fundamentals. The company's order flow remained smooth throughout the October to December 2024 quarter, and it is expected to deliver positive Q3 results in 2025 despite the broader economic underperformance." Notably, AMFI has recently moved RVNL shares from the mid-cap to the large-cap category, indicating increased mutual fund interest in the railway PSU stock.
Technical Analysis and Price Targets
On the technical front, RVNL shares are trading in the ₹348 to ₹365 range. Mahesh M Ojha, AVP of Research at Hensex Securities, suggests that a breakout above ₹365 could push the stock to the ₹378 to ₹388 range in the near term, with a medium-term target of ₹425 per share. However, a breach of the ₹348 support level could lead to a decline towards the ₹320 mark. Investors are advised to hold the scrip, maintaining a stop-loss at ₹348, depending on their investment horizon. Fresh investors can also consider initiating a momentum call at the current market price, with the same stop-loss level.
After climbing to a record high of ₹647 apiece on the NSE in July 2024, Rail Vikas Nigam Limited's (RVNL) share price has remained in the base building mode. The railway PSU stock has lost around 44% from the lifetime high, leading to questions about whether it's an opportune time to buy or if more pain lies ahead.
Fundamental Analysis and Expert Recommendations
According to Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities, "RVNL shares are under pressure, but nothing is wrong with the company's fundamentals. The company's order flow remained smooth throughout the October to December 2024 quarter, and it is expected to deliver positive Q3 results in 2025 despite the broader economic underperformance." Notably, AMFI has recently moved RVNL shares from the mid-cap to the large-cap category, indicating increased mutual fund interest in the railway PSU stock.
Technical Analysis and Price Targets
On the technical front, RVNL shares are trading in the ₹348 to ₹365 range. Mahesh M Ojha, AVP of Research at Hensex Securities, suggests that a breakout above ₹365 could push the stock to the ₹378 to ₹388 range in the near term, with a medium-term target of ₹425 per share. However, a breach of the ₹348 support level could lead to a decline towards the ₹320 mark. Investors are advised to hold the scrip, maintaining a stop-loss at ₹348, depending on their investment horizon. Fresh investors can also consider initiating a momentum call at the current market price, with the same stop-loss level.